do i get recoverable depreciation amount even If the repairs

by Guest » Tue Mar 02, 2010 07:40 pm
Guest

estimate:$5000
Deductble (1000)
Rec depr (500)
Setlement $3500

The actual repair cost only $2500. Do I still get a recoverable depreciation amount even though the actual cost is less than the setlement amount?

Total Comments: 7

Posted: Tue Mar 02, 2010 07:47 pm Post Subject:

Yes you can. The repairs/settlement have nothing to do with the value.

Posted: Tue Mar 02, 2010 09:10 pm Post Subject:

Trench, I disagree. The way the OP spells out the claim, they got $3,500 after the deductible and depreciation were taken. If the repairs were only $2,500 then the $500.00 depreciation would not be able to be recovered since the cost was not incurred.

Guest, you would need to supply the insurance company with a receipt/invoice/whatever showing your full costs. When they see the work was completed for $2,500 - they are not going to issue an additional $500.

Posted: Mon Apr 18, 2011 05:30 pm Post Subject:

apparently it may depend on your state. in Georgia, diminished value is not based on the estimate, but on the severity of damage, mileage, and acv of the car. severity is given a point value based on the damage (repair, replace, structural, etc) the added to an approved formula that includes a mileage factor and multiple of the car's value.

Posted: Tue Apr 19, 2011 11:47 am Post Subject:

Based on the original post, I believe both trench and dasfuk could be correct. If the insurance company sends a check to the insured for $3500, the insured may use the money in any manner he chooses -- including not making the repairs -- and trench is correct. If the insurer indicates that it will pay the recoverable depreciation only after repairs are made, and the repairs do not rise to that level, the insurer will only pay the full cost of the actual repairs, and dasfuk is correct -- the insurer will not send a check for $3500 out of the goodness of its heart (they're all heartless, don't you know :P )

Posted: Fri Apr 22, 2011 06:02 pm Post Subject:

recoverable depreciation is separate from the damage, it pays separate and insures repairs are completed. you should still get it.

we had a hail storm hit a couple years ago, adjusters paid for damage and w/held the recoverable depreciation on the roofs unril repairs were completed or contract from roofer was provided w/ estimated completion date. some of the homeowners actually got better deals on roofing (frined in the business,etc), a few even did the work themselves. recoverable depreciation check was mailed once proof of the repairs were completed.

recoverable depreciation is the dollar difference between replacement value and ACV, this term is used on homeowners claims typically.

diminished value is when a car has to have repairs and even after proper repairs are completed, there's a stigma that the car has suffered a loss in value just becuase it had repairs as compared to the same car that had no repairs. thus, the car has suffered diminished value.

either two terms, they pay separatley from the repair damage and is owed once repairs are completed, regardless if you were able to save money. in GA anyway...

Posted: Wed Aug 31, 2011 11:52 pm Post Subject: recoverable depreciation

Can I receive my recoverable depreciation if all work was completed on my home from storm damage but at a lower cost.

Posted: Thu Sep 01, 2011 04:00 am Post Subject:

You homeowner's coverage is based on either Actual Cash Value (replacement cost minus depreciation) or actual replacement cost. If you received a cash payment based on a specific valuation, but have not used all that money, thee is nothing left to collect from your insurer.

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